Fuel & Energy

The nation’s truckstops and travel plazas are among the largest distributors of diesel fuel and gasoline, and NATSO closely monitors regulatory action and industry trends that affect the supply and distribution of fuel. From biodiesel tax credits to underground storage tank requirements, NATSO is on the forefront of these industry issues.

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EPA has released a proposed rule that would allow E-15 to be sold year-round (subject to certain restrictions) and also impose significant reforms in how RIN markets function. Although NATSO considers the RIN market reform component of the rulemaking unnecessary, EPA appears to have responsibly distinguished between ethanol RINS and RINS associated with advanced biofuels such as biodiesel. NATSO is continuing to analyze the proposal and will provide a more fulsome analysis in the coming days.

U.S. Senate Finance Committee leaders on Feb. 28 introduced legislation to extend the biodiesel tax credit and a variety of other tax provisions that expired in 2017. The legislation provides for a two-year extension covering activities (i.e., biodiesel blending) that occurred in 2018 and 2019.

In the coming weeks, the Environmental Protection Agency (EPA) is expected to propose regulations that would reform the market for Renewable Identification Numbers (RINs), which are the "credits" EPA uses to ensure that refiners satisfy their obligations under the Renewable Fuel Standard (RFS). Although the supposed purpose of these reforms is to "improve transparency" and limit volatility in RIN markets, the reforms under consideration would cause more harm than good. In fact, as NATSO's "RIN Market Volatility" Chart demonstrates, wild RIN price swings over the past several years have been caused by policy announcements, rumors, and news reports, rather than any underlying flaw in RIN markets themselves.

NATSO today joined nine trade associations in urging Congress to pass a multiyear extension of the biodiesel blenders' tax credit in a joint letter representing producers and marketers of renewable fuels.